Here we will see about the Under Armour Loyalty Program
Introduction
Under Armour is an American Sports attire line that has gained insane popularity over the past few years. Loyalty programs are essential marketing strategies adopted by the company that is aimed to attract and retain potential customers. Loyalty programs provide consumers with additional benefits and incentives, which in turn increases the return rate. Such loyalty programs vary from company to company and from brand to brand.
Royalty Program
Under Armour executes such loyalty programs for its target audience. The consumers are divided into four separate levels. They are as follows :
- Participant
- Bronze
- Silver
- Gold
The bigger the purchase, the higher the rewards would accumulate. Signifying that for all completed transactions the higher the customer’s level was, the more funds and rewards were reverted to them in the form of bonus points.
However, a client at the Participant level cannot save or spend their accumulated points unless ten thousand points have been gathered. Each level also consists of different requirements. Bronze participants acquire 3%, Silver acquires 5% and Gold gets 7%.
Only consumers at these three stages can spend or utilise their points. Additionally, all points have an expiration or relevancy period of a year before the points become null and void. Furthermore, these points have the ability to cover up to 30% of all purchases, except at outlets. We will dive further into more detail about the rewards program below.
Backstory
Under Armour first entered the athleticwear market in the mid nineteenth century. The field being one of peak competition and the population was already predominant with tried and trusted brands. However, Under Armours excellent quick drying and moisture absorbing material along with crowd capturing marketing techniques pushed the brand to expand globally.
Previously, Under Armour functioned with their royalty program being processed by another system. Therefore, VostokInvest, their exclusive franchising partner decided that it was time for a transfer.
According to Anna Bulavina, VostokInvest Marketing Director (Under Armour Brand), “The royalty programs volumed to up to 50% of the business amount, therefore appointing an appropriate CRM interface was extremely crucial in their strategy.”
Pre-Transition Period
The preexisting loyalty program ran on another external server. All bonus points were excluded and accumulated by a third party system. This was carried out with authorization via SMS. The hardest part would be the transfer the system for the following reasons:
- There are already established loyalty program rules
- The ongoing loyalty program is currently under use.
- Transfer happens when offline stores are closed
- Make transfers with reference to histories and appropriate loyalty levels.
The reason why the transfer of an existing loyalty program can be cumbersome is because client expectations are built. While launching a new one leaves the client to work with the new rules without having any particular expectations regarding the same.
The Transition Period
VostokInvest planned and launched a multifaceted and multi-leveled loyalty program for Under Armour. The launch took place in 15 stores with 4 promotions, ten automated campaigns, with additional support on phones all while authorizations took place at payment via SMS.
For the Launch:
- New program rules
- Incorporation of cash register software with the loyalty program.
- Introduce and set up communication software with the registered consumers
- Establishing the conditions and requirements for transfer and loyalty levels for the consumers.
The loyalty program rules were also drafted prior to the transfer to Mindbox. Combining all, there exists four levels of promotions with relevant points, reductions and accruals for each level of loyalty.
Additionally, Kirill Bogomolov, VostokInvest Marketer (Under Armour Brand) states how preparing an action plan and determining deadlines through the various stages were crucial for the efficient implementation of the system. This was essential for the transfer to happen uninterfered and unnoticed by clients within a span of few hours.
How the Loyalty Program works ?
The new campaigns that needed to be launched were all carried out through SMS chains. There were three things that happened in order. They are as follows:
- Participant Registration was initiated with a confirmation code
- The write-offs required authorization
- The wallet and virtual cards were linked
Therefore, the interested client joins the Loyalty program by signing up their phone number. Then a confirmation code is forwarded to the registered number along with a link with the relevant terms and conditions as well as rules. Upon initiating a call to the given code, the customer now is a reward member of Under Armours Loyalty Program. They start as Participants in the Loyalty Program.
Conclusion:
Many communications channels were set up with Mindbox. Such as Welcome chains, messages informing the clients of the transition to the new loyalty program, birthday gifts and bonuses, information on the various levels of the program, etc. All of which was carried out with the help of the mail chain.
A Loyalty Program has proven to have increased revenue, profits and sales that helps the company keep up with current demands as well as grow sustainably. A well-devised Loyalty program with well-planned marketing strategies can help improve consumer satisfaction, attract new consumers, narrow turnover as well as improved profits. Consumer relations is one among the most important factors when it comes to the success of a business.
